Raylo, a UK-founded startup that offers a subscription for iPhones, has officially launched and picked up £1.6 million in funding from Techstart Ventures and angel investors.

The idea behind Raylo is to apply the subscription model to smartphones: for a monthly fee of £43.99, the customers can get the latest model of the iPhone and swapped it for a new one after two years. The subscription fee also includes insurance against loss, theft, and accidental damage.

The startup is currently running a commitment-free waiting list for the launch of the next iPhone in September.

“We believe that mobile can be better in every single way and we’re starting by solving the most important part – a smarter new way to get the best iPhones, at a low monthly price, SIM-free and fully insured,” said Karl Gilbert, CEO and co-founder of Raylo. “The networks should be treated like utilities and we believe that everyone should be SIM-only — it’s cheaper and more flexible.”

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